As I See It, Gloves Off...

[floydv]

Did a bit of digging to help clarify the confusion:

ESG = Elio, Sankara, Glaspie = all co-founders of Paul's original company, Elio Engineering dba ESG Engineering (see http://www.esgeng.com/pdf/ESGflyer.pdf). Sankara was Hari Sankara, who apparently is Hari (Sankara) Iyer. Sound familiar? Of course it should, if you read the Offering Circular. Hari Iyer was ESG's co-founder and is now the Chief Operating Officer of Elio Motors (which explains why Hari gets the same salary as Paul). The other co-founder was Bob Glaspie, former Director of Engineering at ESG. He's now Sr. Design Engineer at Virgin Galactic (https://www.linkedin.com/in/bob-glaspie-14523643). He and Hari Iyer co-hold several seat mechanism patents with Paul (which apparently aren't involved in the Elio since the seats will be sourced by Lear).

Regarding who owns the intellectual property in Elio, let's turn again to the Circular, specifically page 33:

"Paul Elio and ESG Engineering

The original design for the Elio was conceived by Paul Elio and Elio Engineering, Inc., dba ESG Engineering, a company partially owned and controlled by Paul Elio. ESG Engineering transferred all rights to the design to the Company, valued at $5,000,000, as consideration for 25,000,000 shares of common stock in the Company. In addition, we assumed approximately $1,277,187 of payables that ESG Engineering had incurred on behalf of Elio Motors. At December 31, 2014 and 2013, these outstanding payables were $344,827 and $346,627, respectively. ESG Engineering transferred 12,250,000 shares of common stock in the Company to Paul Elio in November 2012 in consideration for his services in forming and organizing Elio." [Emphasis added.]

Based on the above and other available information about controlling shares, I see nothing nefarious here, nothing wrong with the Elio management holding the controlling shares (and Paul with a majority of those), and nothing to indicate ESG is controlling any sort of scheme here. As noted before, Paul himself controls about 80% of the shares in Elio, so there's no way ESG has any sort of controlling interest in Elio.

 

[Smitty901]

It does not madder who controls what. What madders is can the ones that do raise the cash to get it into production. And even if they do raise the cash do they have what it takes to see it through.
I still support the idea of the ELIO. But have no hope what so ever that Elio #8019 will roll off a production line in 2016.

 

[DanS]

It does not madder who controls what. What madders is can the ones that do raise the cash to get it into production. And even if they do raise the cash do they have what it takes to see it through.
I still support the idea of the ELIO. But have no hope what so ever that Elio #8019 will roll off a production line in 2016.

I too, will be very surprised if Production Elios start rolling out in 2016. Early 2017 is more likely.

 

[Ekh]

They have 11 months and 30 days (it's a leap year) to open the doors. In the famous words of Miracle Max in The Princess Bride, "It'd take a miracle!" But it's at least as likely as the Bengals winning the Superbowl.

I've been expecting to see my Elio around 3/15/16, but it might be May. Won't be later than that if this thing is going to happen at all.

 

[Rickb]

Did a bit of digging to help clarify the confusion:

ESG = Elio, Sankara, Glaspie = all co-founders of Paul's original company, Elio Engineering dba ESG Engineering (see http://www.esgeng.com/pdf/ESGflyer.pdf). Sankara was Hari Sankara, who apparently is Hari (Sankara) Iyer. Sound familiar? Of course it should, if you read the Offering Circular. Hari Iyer was ESG's co-founder and is now the Chief Operating Officer of Elio Motors (which explains why Hari gets the same salary as Paul). The other co-founder was Bob Glaspie, former Director of Engineering at ESG. He's now Sr. Design Engineer at Virgin Galactic (https://www.linkedin.com/in/bob-glaspie-14523643). He and Hari Iyer co-hold several seat mechanism patents with Paul (which apparently aren't involved in the Elio since the seats will be sourced by Lear).

Regarding who owns the intellectual property in Elio, let's turn again to the Circular, specifically page 33:

"Paul Elio and ESG Engineering

The original design for the Elio was conceived by Paul Elio and Elio Engineering, Inc., dba ESG Engineering, a company partially owned and controlled by Paul Elio. ESG Engineering transferred all rights to the design to the Company, valued at $5,000,000, as consideration for 25,000,000 shares of common stock in the Company. In addition, we assumed approximately $1,277,187 of payables that ESG Engineering had incurred on behalf of Elio Motors. At December 31, 2014 and 2013, these outstanding payables were $344,827 and $346,627, respectively. ESG Engineering transferred 12,250,000 shares of common stock in the Company to Paul Elio in November 2012 in consideration for his services in forming and organizing Elio." [Emphasis added.]

Based on the above and other available information about controlling shares, I see nothing nefarious here, nothing wrong with the Elio management holding the controlling shares (and Paul with a majority of those), and nothing to indicate ESG is controlling any sort of scheme here. As noted before, Paul himself controls about 80% of the shares in Elio, so there's no way ESG has any sort of controlling interest in Elio.

I did some research too and found what may be the actual business plan detailed in the corner of Paul Elio's original concept vehicle design sketch.

9 years later: $70 Million in venture capital (Debt) + millions of $ in refundable and non-refundable reservation deposits (Funding EM's daily operations)+ millions in current crowd funding (potential E builds/testing/funding daily operations) = P5.
Whoever is in control of Team Elio, should be positioned for major milestone progress in 2016 for their anticipated March 2017 production schedule.

 

[floydv]

So Paul's business plan is to fall into money? Nothing wrong with that. Millions of people share the same plan. It's called the Lottery.

 

[JEBar]

if our Elio had of been in our driveway in 2015, that would have been great .... it isn't there but it matters little .... the sun will come up in the morning

if our Elio is in our driveway in 2016, that would be great .... if it isn't, that still matters little .... the sun will come up in the morning

whenever our Elio gets to our driveway, that will be great .... its not the when that is important .... what is important is that it eventually gets there

 

[cantwait]

if our Elio had of been in our driveway in 2015, that would have been great .... it isn't there but it matters little .... the sun will come up in the morning

if our Elio is in our driveway in 2016, that would be great .... if it isn't, that still matters little .... the sun will come up in the morning

whenever our Elio gets to our driveway, that will be great .... its not the when that is important .... what is important is that it eventually gets there

I think that this is the key to enjoying "the Elio journey". Looking at the reservations as an investment that you are going to get a 50%+ return on, and the stock purchase as a retirement plan will only lead to disappointment. Looking at the money as a charitable or political contribution to a good cause makes everything much less stressful.

Looking at the production dates as promises just causes frustration when they get extended again. Looking at them as the carrot dangling in front of us keeps us excited and moving forward towards a brighter tomorrow.

 

[Kuda]

I think that this is the key to enjoying "the Elio journey". Looking at the reservations as an investment that you are going to get a 50%+ return on, and the stock purchase as a retirement plan will only lead to disappointment. Looking at the money as a charitable or political contribution to a good cause makes everything much less stressful.

Looking at the production dates as promises just causes frustration when they get extended again. Looking at them as the carrot dangling in front of us keeps us excited and moving forward towards a brighter tomorrow.

 

[Cache Man]

We have about 6-9 months to see the movement at the plant and the hiring of employees. We should see testing of the 25 Elio vehicles. This is if they want to start production by the end of 2016. If this doesn't happen, there will be leaked hints in a carefully worded statement(s) (in six months or less) and then a delay announcement will soon follow. I don't know if Elio can take another hit after so many push outs after hard statements regarding production. They were last saying production mid-year but they are saying by the end of 2016. Just watch the plant, the testing, and maybe not so much the emails.

Based on Elio's web, they have made a hard statement regarding production in 2016. Lets hope it holds true...

"Say hello to Elio. The ultra-high-mileage, sleek two-seater for an incredibly affordable base price. Coming fourth quarter 2016!"